Guilty Verdicts for Cicero Officials in Insurance Fraud Scheme

After 12 days of deliberation jurors returned guilty verdicts against Cicero Town President Betty Loren-Maltese, alleged mob boss Michael Spano Sr. and five other defendants on conspiracy charges arising from a scheme to direct premium payments to a company they controlled. The jury acquitted former Cicero treasurer Joseph DeChicio on all counts.

Prosecutors in the high profile case were successful in proving that Specialty Risk Consultants, an insurance firm set up in 1992 by John LaGiglio, one of the defendants, was linked to Spano, who funded the operation. Cicero’s medical insurance, which had been provided by Travelers, was subsequently changed to Specialty Risk by decision of the Town’s supervisory board, headed by Loren- Maltese, whose late husband Frank “Baldy” Maltese served as town assessor, and according to witnesses had “guaranteed” to Spano that the insurance business would be directed through Specialty.

According to an AP report, costs for medical coverage rose from $50,000 per week to $128,000 per week; however so much was being siphoned off that the the city fell behind in its health care payments – at one point it owed $750,000.

The convictions carry a 20 year maximum sentence. Jurors were slated to return to court today to begin deliberations on the amount(s) the defendants will have to repay to Cicero as a result of their activities.

Loren-Maltese declined comment after the verdicts were announced, but her attorney indicated that she would “continue to fight.”